Microsoft Proposes License Renewal for Russian Units of International Firms
Technology giant, Microsoft, has sent proposals for license renewal to continue operations with international firms and private companies in Russia that are not affected by sanctions. The corporation has reportedly sent letters to about 1000 Russian customers, according to one of the proposals. Microsoft’s move has been initiated as the company seeks to study its prospects of returning to the Russian market.
The chairman of the Russian Asian Union of Industrialists and Entrepreneurs, Vitaly Mankevich, confirmed receipt of such proposals by several companies. He said that Microsoft was trying to “study the possibilities of returning to the Russian market”.
Microsoft had announced its decision to suspend its product sales and services in Russia in March 2022. The company’s departure from the Russian market is estimated to have led to losses of up to $125 million. Additionally, over 400 employees who worked in Russia for the company are said to have been affected by the decision. Brad Smith, the President of Microsoft, had stated in an interview with the Washington Post that the company would reduce its business in Russia “until there is almost nothing or nothing at all.”
According to a trusted source among distributors quoted in Kommersant, the demand for Microsoft’s products among Russian business still exists because the software is supplied in parallel import through boxed versions.
Despite Microsoft’s decision to suspend sales in Russia, the company’s effort to send proposals for the renewal of licenses to continue operations suggests that the tech giant is exploring ways to return to Russia’s lucrative market.